eToro generated revenue of over $12.6 billion in 2024 after ending the previous year with only $3.88 billion, a yearly rise of 225 per cent, according to the latest initial public offering (IPO) prospectus filed by the Israeli fintech yesterday (Monday) with the Securities and Exchange Commission (SEC). Interestingly, 96 per cent of the total revenue came from crypto assets.
Pushing Profits Higher
The net profit of the Israeli company also sharply increased to $192 million in 2024, compared to $15.3 million in 2023 and a loss of $21 million in 2022.
Out of the total revenue, the net trading income from equities, commodities, and currencies came in at $328.7 million, compared to $305.8 million in 2023. However, revenue from crypto assets was the key driver for the company, as it jumped to $12.1 billion last year, a 255 per cent increase.
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However, crypto derivative offerings remained a loss-making revenue stream for the company, resulting in a loss of $130.7 million. Although crypto derivatives brought in $218 million for the platform in 2022, the revenue loss in 2023 was $63.1 million.
Despite crypto assets being the primary revenue generator for eToro, the cost of revenue from crypto assets was also the highest, standing at over $11.8 billion in 2024, compared to $3.3 billion and $5.7 billion in 2023 and 2022, respectively.
A further look into the prospectus reveals that eToro collected $931 million in total commission last year, compared to $639 million in 2023 and $632 million in 2022. The fourth quarter of 2024, when Bitcoin’s value surpassed $100,000, brought in the highest commission at $303 million.
The Ambition to Go Public
The Israeli company filed the prospectus as it prepares to list its shares on the Nasdaq under the ticker ETOR.
Although eToro did not disclose the valuation it is seeking with the IPO, the revenue and profits indicate that it might be aiming for a valuation of about $5 billion, which was also revealed in earlier media reports.
Interestingly, this would not be eToro’s first attempt to go public. The company planned a $10.4 billion SPAC merger in 2021 but discarded the initiative, reportedly due to “challenging market conditions.” It later raised $250 million at a valuation of $3.5 billion in 2023.
Last year, the UK unit of eToro also settled charges with the SEC for operating as an unregistered broker and unregistered clearing agency, paying $1.5 million. The company further agreed to limit crypto trading in the country to only Bitcoin, Bitcoin Cash, and Ether.
eToro generated revenue of over $12.6 billion in 2024 after ending the previous year with only $3.88 billion, a yearly rise of 225 per cent, according to the latest initial public offering (IPO) prospectus filed by the Israeli fintech yesterday (Monday) with the Securities and Exchange Commission (SEC). Interestingly, 96 per cent of the total revenue came from crypto assets.
Pushing Profits Higher
The net profit of the Israeli company also sharply increased to $192 million in 2024, compared to $15.3 million in 2023 and a loss of $21 million in 2022.
Out of the total revenue, the net trading income from equities, commodities, and currencies came in at $328.7 million, compared to $305.8 million in 2023. However, revenue from crypto assets was the key driver for the company, as it jumped to $12.1 billion last year, a 255 per cent increase.
You may also like: “eToro Quadruples BTC Trading Volume amid US Election; Pepperstone, Axi See Jump“
However, crypto derivative offerings remained a loss-making revenue stream for the company, resulting in a loss of $130.7 million. Although crypto derivatives brought in $218 million for the platform in 2022, the revenue loss in 2023 was $63.1 million.
Despite crypto assets being the primary revenue generator for eToro, the cost of revenue from crypto assets was also the highest, standing at over $11.8 billion in 2024, compared to $3.3 billion and $5.7 billion in 2023 and 2022, respectively.
A further look into the prospectus reveals that eToro collected $931 million in total commission last year, compared to $639 million in 2023 and $632 million in 2022. The fourth quarter of 2024, when Bitcoin’s value surpassed $100,000, brought in the highest commission at $303 million.
The Ambition to Go Public
The Israeli company filed the prospectus as it prepares to list its shares on the Nasdaq under the ticker ETOR.
Although eToro did not disclose the valuation it is seeking with the IPO, the revenue and profits indicate that it might be aiming for a valuation of about $5 billion, which was also revealed in earlier media reports.
Interestingly, this would not be eToro’s first attempt to go public. The company planned a $10.4 billion SPAC merger in 2021 but discarded the initiative, reportedly due to “challenging market conditions.” It later raised $250 million at a valuation of $3.5 billion in 2023.
Last year, the UK unit of eToro also settled charges with the SEC for operating as an unregistered broker and unregistered clearing agency, paying $1.5 million. The company further agreed to limit crypto trading in the country to only Bitcoin, Bitcoin Cash, and Ether.
This post is originally published on FINANCEMAGNATES.
